Japan Income Tax Rates for 2014
Japan Income Tax Brackets
|Tax Bracket (yearly earnings)||Tax Rate (%)|
|¥0 - ¥1,950,000||5.00%|
|¥1,950,000 - ¥3,300,000||10.00%|
|¥3,300,000 - ¥6,950,000||20.00%|
|¥6,950,000 - ¥9,000,000||23.00%|
|¥9,000,000 - ¥18,000,000||33.00%|
|¥18,000,000 and up||40.00%|
Japan has a bracketed income tax system with six income tax brackets, ranging from a low of 5.00% for those earning under ¥1,950,000 to a high of 40.00% for those earning more then ¥18,000,000 a year.
How does the Japan Income Tax compare to the rest of the world?
Out of the thirty four countries tracked, twelve have a higher maximum income tax rate then Japan. Countries with similar tax brackets include Slovenia with a maximum tax bracket of 41.00%, Ireland with a maximum tax bracket of 41.00% and Italy with a maximum tax bracket of 43.00%. Keep in mind that our ranking measures only nationwide income taxes, and does not account for local income taxes at state, province, or municipal levels.
|Maximum Income Tax||Income Tax Allowance||World Tax Rank|
|40.00%||¥380,000 ($3,192 USD)||13th of 34|
What is the Japan Income Tax?
Japan's personal income tax is a bracketed income tax that must be paid yearly by all citizens to the government of Japan. Failure to pay, or underpayment of, the Japan income tax can result in high fees, fines, or jail time.
In addition to Japan's income tax, other taxes may apply to wages or profits earned, including social services, medical care, and capital gains taxes.
Japan Income Tax Allowance
Japan provides most taxpayers with an income tax allowance of ¥380,000, which can be kept as a tax-free personal allowance. Japan's tax credit is a basic (fixed) allowance available to all (single) taxpayers without dependents.
A tax credit is a fixed amount of money that may be kept by taxpayers without paying any income taxes. Generally, a tax credit is subtracted from your gross income before your taxable income is calculated.
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